key data car recycling 2018 - home - arn · and batteries) passenger cars were registered, which is...
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2018Key data
car recycling
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ContentKey Data – ARN 3
ARN’s ‘new style’ in 2018 4
Sustainable Development Goals as a target 6
ARN’s mission and vision 7
2018 – a good year for ARN and for car recycling in the Netherlands 8
2018 Finances 12Combined balance sheet as of 31 December
Combined profit and loss account
ARN’s statutory duty 13
Explanatory notes to the 2018 Financial report 14
Colophon
Publication
Stichting Auto & Recycling and ARN Holding B.V.
De Corridor 5, 3621 ZA Breukelen
P.O. Box 190, 3620 AD Breukelen, The Netherlands
T +31 (0)346 728 220
www.arn.nl/en
Concept and realisation
Reach Communications, Baarn, The Netherlands
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Key Data – ARNUseful application performance achieved
Of which recycling is
Of which energy recovery is
Contribution of car dismantling companies to performance achieved
Contribution of shredder companies to performance achieved
Contribution of PST plant to performance achieved
Number of vehicles with recycling fee
Number of electric vehicles and hybrid electric vehicles with recycling fee
Recycling fee for cars
Recycling fee lithium-ion batteries
Number of end-of-life vehicles processed in the Netherlands (ORAD*)
Number of end-of-life vehicles processed by ARN (ORAD*)
Average weight of end-of-life vehicle (kg)
Recycling costs per end-of-life vehicle
Total weight of lithium-ion batteries collected (kg)
Of which are utilised as second use (kg)
Of which are recycled (kg)
Number of ARN chain partners
Carbon footprint of car recycling chain (savings in kton CO2)
Recycling fee fund
Administrative contribution fund
Number of ARN employees (fte)
2017
98.6%
87.1%
11.5%
25.2%
57.6%
15.8%
483,161
11,176
€ 42.50
€ 10 – € 210
234,595
196,252
1,035
€ 88
23,579
14,350
9,229
298
-170.23
€ 70,012,051
€ 10,434,574
70.5
2018
98.4%
87.1%
11.3%
24.6%
58.6%
15.2%
519,359
19,385
€ 40
€ 9 – € 190
247,663
207,239
1,043
€ 78
17,412
15,418
1,994
298
-186.58
€ 68,577,703
€ 11,332,684
69.2* ) Online Car Dismantling
Registration system – ORAD
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Following the turbulence in 2017, with all the
changes in operation and staffing, 2018 was the
year in which ARN really showed its ‘new style’.
It revealed a stable organisation with management
and staff who know ARN’s direction and what
they need to do.
Last year’s keywords were coordination
and facilitation.
Serving the chain
ARN wanted to be very clear about one thing:
it is the organisation that works together with the
225 car dismantling companies, 7 collection
companies, 11 processing companies, 41 resellers
and 14 shredder companies that together with the
Post Shredder Technology (PST) plant make up the
car recycling chain. It is an organisation that is
emphatically a partner to all of these essential
links in the chain.
An organisation that also dares to make those
choices for activities and initiatives that are truly
its core business and does not stray from these. For
instance, ARN implemented the decision in 2018 to
no longer perform consultancy tasks for third
parties. As part of this, the consultants from ARN
got a new name for their role: business developer.
In this role, they work on solutions in the automotive
recycling chain that are focused on the future.
Starting point for new activities
Against that backdrop, ARN’s Partner Day at the
Automotive Campus was not only a valuable
moment for making connections, but also a
starting point for new activities. ARN has taken the
lead to make its presence felt more firmly in the
forefront of the automotive chain. After all, the
innovations that car manufacturers use in their
products have a huge influence on the practice of
dismantling and recycling later on.
ARN also actively took to the road in 2018 to find
solutions with existing stakeholders, and new
stakeholders in particular, which further improve the
effectiveness, efficiency and quality of car recycling.
ARN’s ‘new style’ in 2018In 2018, ‘the new ARN’ continued to take shape. The organisation
set out in a new direction in 2017 and in 2018 increasingly showed
itself to be the coordinator of car recycling. It means that ARN
has focused specifically on its greatest task: high quality car recycling
at a reasonable cost.
“We dare to make choices for activities which are truly
its core business”
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In doing so, it became clear that the market is
changing. Take the dismantling of electric cars
and the recycling and reuse of drive batteries, for
instance. The ‘electric car’ is a voyage of discovery
for everyone in the chain. Companies will have to
adapt and business owners will have adjust their
business models. ARN supports companies by
suggesting ways they can deal with this.
Safe dismantling is always the top priority in this.
For instance, training courses and programmes
should enable employees at car dismantling
companies to be able to safely process electric cars.
ARN also applies its new coordinating and
facilitating approach in this area. It means that
ARN does not provide the education, training and
certification itself, but rather it actively finds the
best parties to perform these tasks.
On the right track
It became clear in 2018 that ARN’s new approach
to its tasks has found favour with the chain
partners. The partners emphatically indicated
that they want to run their own businesses. They
do not want to be pampered, but they do want
goal-oriented facilitation. This all goes to show
that we are on the right track with our new
direction. In the year ahead, we will also actively
dedicate ourselves in the interest of high quality
and responsible car recycling together with all
of the parties.
Ingrid Niessing – Managing Director of ARN
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ARN is dedicated to high quality and responsible
car recycling in the Netherlands. That works well
in practice, because good arrangements have been
made with the automotive sector about this in
the Netherlands. However, it also happens because
we really want it. There is a shared sense of
purpose running through the organisation.
We see car recycling as making a vital contribution
to a better world.
That is absolutely not a lofty or arrogant view. A
modern organisation always keeps the big picture
in mind and its place within it. The UN’s seventeen
Sustainable Development Goals (SDGs) help with
this. They enable organisations to contribute to
reducing poverty, inequality and climate change in
Sustainable Development Goals as a targetARN is moving towards a circular economy and has five Sustainable
Development Goals (SDGs) on its compass.
their own way. Five of these SDGs were once again
a huge source of inspiration for ARN in 2018:
• Ensuring sustainable patterns of consumption
and production
• Sustainable and affordable energy
• Ensuring inclusive and sustainable economic
growth and decent jobs
• Partnerships for the goals
• Innovation and sustainable infrastructure
These five SDGs are not themes that are free of
obligations for ARN. They are clear and tough
tasks. We use them in a very practical way,
namely to define the issues and choices we at ARN
are faced with. They also help ARN to be critical
about its own performance. For example,
whether we have made the right choices and where
we can improve.
Working along the lines of the SDGs has helped us,
for instance, to become more critical about the
carbon footprint of the car recycling chain. We
have not just been measuring this value since 2017:
we were able to immediately reduce it considerably
together with our chain partners. In 2018 we saved
186.58 kton CO2 on the footprint of the car recycling
chain (2017 saving: 170.23 kton). This development
also enables us to continuously improve the
crucially important balance between costs,
recycling performance and the carbon footprint.
In this way, ARN gives substance and direction to
its own reason for existence, namely to contribute
to a circular world through car recycling!
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ARN’s Mission
ARN’s Vision
Together with our partners, we aim to achieve a responsible
and high standard of car recycling.
At ARN, we believe that car recycling contributes to
the circular economy, where there is no damage to the natural or living
environment. What we can’t do now, will be possible later.
Tackling unfair competition and leakage flows
Equality
Shared responsibility
Account management and partnerships
Second use of batteries from end-of-life electric vehicles
High quality recycling techniques of waste flows in order to reduce energy consumption
Reduction of carbon footprint of car recycling chain
Drainage installations and fireproof containers
Green investment strategy
Quality control of car dismantling (QCD)
Training courses on the safe dismantling of car batteries
Intensive collaboration within the chain
High quality applications
Processing car shredder waste
Sheet piling
Informing consumers about the collection network
Investing in sustainable car recycling
98.4% car recycling
Curbing leakage flows for environmentally sound processing of waste flows
Research into higher quality ways of recycling
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2018 – a good year for ARN and for car recycling in the NetherlandsIf we want to truly make our society and economy circular in
the future, recycling is essential. In that respect, 2018 was a good year.
In conjunction with the chain partners, ARN processed a record amount
of 223 million kilos of materials.
Amazing achievement by the chain
in 2018: 98.4 per cent
Business owners and partners in the car recycling
sector, led by ARN, have succeeded in reusing no
less than 98.4 per cent of the weight of end-of-life
vehicles. It must be said, this is an amazing
achievement. In 2018, the car recycling industry
responsibly processed 223 million kilos of
materials from 207,239 cars.
Reuse of parts
A used part can often last many more years in a car.
That is why ARN prefers not to let good parts from
end-of-life vehicles go to waste. On the contrary,
efforts by car dismantling companies in 2018
enabled a substantial part of the weight of end-of-
life vehicles to be re-utilised through the reuse of
parts. This involved a wide range of products, from
dynamos to water pumps and from entire engine
blocks and gearboxes to mirrors and dashboards
and even airbags fitted to seats and air-
conditioning pumps.
Electric vehicles: the peak is approaching
This led to a great result. In 2018, around 90 per
cent of end-of-life drive batteries was given a
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second life at a processing company that converts
batteries for reuse in stationary applications. For
years, ARN has been preparing for the processing
of the future flow of electric vehicles with its chain
partners. It is true that the number of drive
batteries for dismantling and recycling is still
modest, but that will change over time. There are
already signs of this. A record number of electric
cars were sold in 2018. Data from the RAI
Association, BOVAG and RDC show that no fewer
than 24,024 new electric (powered by hydrogen
and batteries) passenger cars were registered,
which is an increase of around 200 per cent
compared to 2017. BOVAG and The RAI Association
forecast a total of 28,000 new registrations in 2019.
ARN will continue to prepare the chain for
dismantling, reuse and recycling.
Curbing leakage flows
As the leader of the car recycling chain,
ARN is working hard on curbing leakage flows,
where rogue garages and car dismantling
companies compete unfairly with ARN partners.
This is a persistent practice that is difficult
to combat. According to estimates by the
German Institute Öko-Institut, between 3.4
and 4.6 million end-of-life vehicles disappear
each year because of this. There is a high
chance that these cars are not dismantled in
an environmentally-friendly manner.
Everyone plays their part
in the recycling percentage
Car dismantling companies contribute around a
quarter (24.6 per cent) of the car recycling
percentage that we achieve in Netherlands under
the leadership of ARN. Shredder companies
achieve 58.6 per cent of the contribution, in
particular through the recovery of various metals
from cars which are then delivered to smelting
companies either directly or through resellers.
These are mainly metals such as aluminium, iron,
copper and other more exotic metals. The PST
plant makes a contribution of 15.2 per cent. It
processes over 800,000 kilos of shredder waste,
which means that it processes almost 41,000 tons
of waste each year. Residues are split into twenty
raw materials in this ‘post-separation plant’ that
can be used for new products.
Reuse: being creative with recycled
raw materials
The higher the number of good raw materials
that can be recovered from end-of-life vehicles,
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the greater the chance that these can be reused
by a manufacturer. ARN works actively on the
reuse of recycled raw materials with the car
recycling chain. In doing so, ARN invests a great
amount of energy into the development of useful
new applications together with its partners.
There are already numerous good examples of
reuse. The best known example, without a doubt, is
the circular soil-retaining structure sold under the
brand Circore, which is now being widely used by
water authorities. Soil-retaining materials, such as
sheet piling and planks, prefabricated bulkheads,
beams and dam walls are made from recycled plastic
from end-of-life vehicles. To be more precise, this
is the plastic that is separated from the residual
materials of end-of-life vehicles in the PST plant in
Tiel. ARN’s focus in 2018 is also its broader goal for
the coming years, namely the development of new
applications with manufacturers.
Car recycling: a source of work
In the Netherlands, no fewer than 5,000 people
work in recycling and the majority of them work in
one of the 225 ARN car dismantling companies. This
means that car recycling is also of great economic
importance and it is a serious sector. ARN is the
catalyst, stimulator and source of knowledge for
all of these people and their employers. ARN is also
often the driving wheel for partnerships between
various parties in the chain.
The recycling fee
ARN is the organisation that implements the
manufacturers’ responsibility on behalf of the
automotive sector in the Netherlands in terms of
recycling. Due to all manner of developments, it was
possible to reduce the recycling fee from €42.50
to €40 in 2018. On 1 January 2019, the recycling fee
was further reduced to €37.50. ARN and the chain
partners once again worked efficiently in 2018 and
also contributed to developments in the market.
Cars are lasting for longer on average (currently
over eighteen years) and sales of new cars are
picking up. The administrative contributions for
Li-ion car batteries for hybrid and fully electric
cars are also being reduced.
Fluids: making progress
Before a car can go into the shredder, all the
fluids are removed. More specifically, this involves
the removal of fluids such as windscreen spray
fluid, coolant, oil, petrol, diesel, brake fluid and
refrigerant. ARN, together with processing
companies, has made it possible to reuse many
of these fluids. For instance, a refinery uses the
brake fluid drained from cars as the base product
for ‘new’ DOT 4 brake fluid. The company
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produces pure ethylene glycol from the waste
coolant collected, which is the base material for
new coolant. The recycling of fluids is going
through rapid change. For instance, the base oil
that is made from processed oil from the recycling
chain by ARN’s refinery partner is a sought-after
product in the industry.
ARN and its own performance
The lean & green approach adopted by ARN’s office
management enabled it to make considerable
internal cost reductions in 2018. Two years ago,
ARN opted for the most effective and efficient
manner of supporting the sector. ARN found new,
cheaper office premises and altered its
organisation structure (in 2018: 69 employees in
Breukelen and Tiel, expressed in fte). This was all
part and parcel of a cost-effective approach to
ARN’s important and extensive range of duties.
Two years following its introduction, the new
direction has ensured that ARN operates in a more
recognisable and transparent manner, including
during the exchange of knowledge in the chain and
during consultations with various other
organisations. The direction for 2019 is working on
car recycling innovations focused on results!
What about the final 1.6 per cent?
Is it really possible to achieve one hundred per cent
recycling of end-of-life vehicles? This may be
theoretically possible, but in practice it is proving
to be difficult. ARN works on innovative
technologies with the PST plant in Tiel to be able to
separate materials more smartly, accurately and
effectively. This involves making refinements, in
particular, to the production line. For example, by
adding extra modules, such as pellet production
lines and mineral pulverisers, which enable the
final fractions to be produced more efficiently. The
mineral pulveriser line manages to reduce the
coarse mineral fraction to small grains measuring
half a millimetre. This facilitates the recovery of
copper from these fractions. These seem like small
steps, but each time they raise the recycling
performance to a higher level.
Full of energy in 2019.
These are the focus points.
It is common knowledge that recycling is not
something you do on your own. A lot needs to be
done, and ARN is pleased to be taking the lead. What
are the important focus points for 2019? ARN has
an extensive to-do list. As part of public awareness,
we are focusing more strongly on providing
information about the strength of the car recycling
chain and the contribution made by consumers
and the business world to a circular economy
– 98.4 per cent car recycling. This ranges from
second use, to recycling batteries from end-of-life
electric vehicles. It also involves the way these are
handled by the chain, whether we know how this
should be done and what it means for the sector.
Naturally, we continue unabated in our pursuit of
high quality recycling techniques for waste flows.
Nevertheless, the bar also continues to be high in
2019 for ARN and its chain partners.
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Combined balance sheet as of 31 December
Intangible fixed assets
Tangible fixed assets
Financial fixed assets
Total fixed assets
Inventories
Receivables
Liquid assets
Total current assets
Total assets
Equity capital
Total equity capital
Recycling fee fund
Battery management fund
Provisions
Long-term liabilities
Short-term liabilities
Total liabilities
Total liabilities
01
02
03
04
05
06
07
08
09
10
11
12
2017
505,680
25,706,879
53,372,269
79,584,828
427,041
3,658,345
2,301,591
6,386,977
85,971,805
14,521
14,521
70,012,051
10,434,574
76,814
10,256
5,423,589
85,957,284
85,971,805
2018
528,061
23,002,559
51,979,427
75,510,047
246,374
3,683,515
4,739,618
8,669,507
84,179,554
14,521
14,521
68,577,703
11,332,684
88,130
10,211
4,156,305
84,165,033
84,179,554
(following appropriation of profits in euro’s)
FinancesARN aims to achieve a responsible and high standard
of car recycling based on strong partnerships. The recycling
fee fund finances recycling activities for cars and therefore
ARN’s activities. We finance our activities for battery
recycling using the battery administrative fee fund.
As the implementing organisation, ARN controls the recycling
chains, from the car dismantling companies to the PST plant.
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Combined profit and loss account
Income from the recycling fee
Income from the battery administrative contribution
Income from investments
Other income
Interest income and similar income
Total income
Cost of sales
Cost of outsourced work and other external charges
Wages and salaries
Social security costs and pension costs
Depreciation on fixed assets
Other operating expenses
Interest expenses and similar charges
Total operating expenses
Operating profit
Taxes on profits or loss on ordinary activities
Result after tax
13
14
15
16
17
18
19
20
21
22
23
24
25
(in euro’s) 2017
16,851,627
910,117
1,687,530
5,709,284
1,776
25,160,334
13,495,056
2,282,776
4,410,891
882,022
4,046,371
12,551
159,696
25,289,363
-129,029
-152,456
-281,485
2018
17,261,595
1,406,438
686,858
5,926,459
0
25,281,350
12,400,847
2,303,341
3,830,344
982,459
4,103,076
9,588
2,017,979
25,647,634
-366,284
-169,954
-536,238
ARN’s statutory duty
The combined balance sheet and the combined
profit and loss account contain the figures for
Stichting Auto & Recycling, ARN Holding B.V.,
ARN Auto Recycling B.V., ARN Recycling B.V.
and ARN Sustainability B.V. These figures are
derived from the consolidated annual accounts of
ARN Holding B.V. and the annual accounts
of Stichting Auto & Recycling.
The consolidated annual accounts of ARN Holding
B.V. have been drawn up on the basis of Book 2,
ARN’s mission is to achieve recycling performance of 95 per cent
as effectively and efficiently as possible and in doing so,
guarantee the continuity of car recycling. In order to perform
our statutory duty for environmentally responsible recycling
of end-of-life batteries, purchasers of passenger cars or vans pay
a recycling fee. For ARN, a better recycling performance means
making a sensible choice between economics (costs), ecology
(carbon footprint) and the recycling percentage. This ultimately
leads to an optimum sustainability performance.
14
Explanatory notes to the 2018 Financial report1. Intangible fixed assetsThe intangible fixed assets consist of software acquisitions and are depreciated linearly to zero over five years.
2. Tangible fixed assetsTangible fixed assets consist of among other things land, company premises, machines and installations.ARN Auto Recycling B.V. had 199 drainage units at the end of 2018 (2017: 200) which are loaned to affiliated car dismantling companies.
3. Financial fixed assetsStichting Auto & Recycling has placed the investment portfolio with two asset management companies.
The funds are invested in both bond funds and equities funds. The asset management companies have adopted a defensive and sustainable investment policy that is derived from the investment charter of Stichting Auto & Recycling. This means that the risks associated with investment are kept at an absolute minimum and sustainable investment is guaranteed.
4. InventoriesThe inventories consist of the inventory of final fractions and the inventory of shredder waste used for production by ARN Recycling B.V. During the valuation of the inventories, consideration was given to any decreases in value on the date of the balance sheet.
5. ReceivablesThe receivables entry consists primarily of accounts receivables, battery administrative contributions which are still to be invoiced and other receivables.
6. Liquid assetsThe funds of Stichting Auto & Recycling, ARN Holding B.V. and its subsidiaries have been placed with creditworthy banking institutions.
7. Equity capitalThe foundation capital has been paid up by the administrators RAI Vereniging, BOVAG, Vereniging FOCWA Schadeherstel and STIBA. Each organisation has paid up an equal share of the capital.
Part 9 of the Dutch Civil Code. The annual accounts
of Stichting Auto & Recycling have been drawn up on
the basis of its own principles. The most significant
differences between this and Book 2, Title 9 of
the Dutch Civil Code are the constitution of the
recycling fee fund, the constitution of the battery
management fund and that its group companies
are not consolidated in the annual accounts of
Stichting Auto & Recycling.
15
8. Recycling fee fundThe annual foundation result concerning the Management of End-of-Life Vehicles Decree (Bba) is incorporated in the recycling fee fund. The result concerning the Bba is shown in the statement of income and expenditure and is added to or deducted from the recycling fee fund. The fund serves for anticipated and unforeseen future expenses.
9. Battery management fundThe annual foundation result concerning the Battery Management Decree (Bbb) is incorporated in the battery management fund. The result concerning the Bbb is shown in the statement of income and expenditure and is added to or deducted from the battery management fund. The fund serves for anticipated and unforeseen future expenses.
10. ProvisionsA provision has been built up for major maintenance
of the premises of ARN Recycling B.V. that is based on anticipated costs.
11. Long-term liabilitiesThe affiliated car dismantling companies have provided a surety for the use of logo signs. On 31 December 2018, there were 225 (2017: 226) car dismantling companies with an affiliation agreement.
12. Short-term liabilitiesShort-term liabilities consist primarily of accounts payable and the material obligation for car dismantling companies.The entry regarding the material obligation for car dismantling companies shows the disposal fee that is still payable to the car dismantling companies and the anticipated losses for collection and processing. The obligation is linked to the outstanding material balances for each company. Outstanding material balances are caused by materials that are still in the end-of-life vehicles that are deregistered for dismantling or that are present in
packaging, or which have already been disposed of but not yet claimed.
13. Income from the recycling feeIn 2018, a recycling fee was charged for a total of 519,359 newly registered vehicles in 2018 (2017: 483,161). The comparable figure for 2017 has been adjusted because the recycling fee was still being charged in 2018 with respect to 2017.
14. Income from the battery administrative contributionThe administrative contribution for Li-ion batteries ranges from €9 to €190 including VAT and depends on the weight of the battery. The administrative contribution for lead-acid starter batteries is €0.05 excluding VAT. Administrative contributions were charged for 19,385 batteries for electric vehicles in 2018 (2017: 11,176) and were charged for 949,255 lead-acid batteries in 2018 (2017: 877,489).
15. Income from investmentsStichting Auto & Recycling has given its investment companies a defensive mandate, characterised in particular by investments in bonds and shares. The income recorded for this is the dividend income and the bond interest. The market share was negative in 2018 and for this reason it was recorded under interest expenses and similar charges.
16. Other incomeOther income consists primarily of the purchase and sale of materials.
17. Interest income and similar incomeThe interest consist primarily of the interest on savings balances.
18. Cost of sales207,239 end-of-life vehicles were dismantled by the 225 affiliated car dismantling companies in 2018 (2017: 226 affiliated companies and 196,252 end-of-life vehicles dismantled).
Disposal fees were paid out to these car dismantling companies. Furthermore, the cost of sales consists of the costs of collection and processing of ARN materials and production costs of ARN Recycling B.V.
19. Costs of outsourced work and other external chargesThese costs include among other things publicity, accommodation, office, transport and other business costs.
20. Wages and salariesThe average number of employees at ARN consists of 69.2 fte (2017: 70.5 fte). Furthermore, Stichting Auto & Recycling has a board of directors with four members and ARN Holding B.V has a supervisory board with three members.
21. Social security costs and pension costsThis entry is in addition to the social security costs required by law from the pension costs. Employees aged 21 and older participate in a collective
pension scheme when they start employment.
22. Depreciation on fixed assetsThe depreciations concern depreciations on machinery owned by ARN Recycling B.V and depreciations on the drainage installations that ARN Auto Recycling B.V has loaned to the car dismantling companies.
23. Oher operating expensesThe other operating expenses concern the allocation to the provisions.
24. Interest expenses and similar chargesThe sharp increase compared to 2017 is linked to the negative share price of the investments. It also includes the management costs for the investments.
25. Taxes on profits or loss on ordinary activitiesARN Holding B.V. together with its subsidiaries constitutes a tax entity for the purposes of company tax.
You can find the online versions of this key data
and ARN’s 2018 Sustainability Report at
www.arn.nl/sustainability-report2018